Telstra's Share price performance is concerning. Despite share buybacks in recent years, the large number of outstanding shares (11 billion) may limit their effectiveness. Additionally, the decline in dividend per share from 30 cents to 18 cents since 2015 is a significant concern.
The company's recent focus on CEOs with a finance background has led some to question whether Telstra needs a leader with deeper industry experience and a strategic vision for growth. While financial acumen is important, expertise in the technology sector could be vital for Telstra to capitalize on its market position and potential for diversification.
Key Questions for Telstra's Leadership:
- What is the long-term strategy for Telstra to achieve sustainable share price growth and improve shareholder value?
- How will Telstra leverage its market position and resources to expand its offerings and capture new growth opportunities in the technology sector?
- Does Telstra's leadership team possess the necessary industry experience and expertise to drive innovation and navigate the evolving technology landscape?
While a CEO's performance should be evaluated based on its impact on shareholder value, hence a 3-year timeframe is best to use to measure effectiveness of new CEO strategy. It is crucial for management to demonstrate a clear long-term strategy for creating sustainable growth and increasing shareholder returns. When a company experiences prolonged periods of stagnant share price performance, it raises questions about the effectiveness of the current strategy and leadership in my opinion.
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